Taxpayers who might have missed filing their income tax return (ITR) by July 31, 2022 deadline, could still file a late return. The late return can be filed with a penalty of Rs 5,000 along with some interest on the website of the income tax department.
Not many people know that a taxpayer can claim a refund under certain circumstances even after the due date of filing a late return is also over.
Under Section 119(2)(b), the Central Board of Direct Taxes (CBDT) can issue general or special orders in relation to any case, class of cases, authorising the income-tax officers to admit a belated application or claim for exemption.
“Every taxpayer is required to file his/her return within the prescribed time limit under section 139. But, in case they are not able to file the belated return resulting in inability to claim refund, exemption, or carry forward of losses this is applicable. Hence, section 119(2)(b) acts as a remedy for the taxpayers to get their claims admitted,” Yeeshu Sehgal, Head of Tax Markets, AKM Global told CNBC-TV18.com.
These claims will only be allowed by the income tax authority provided, making such a claim within the prescribed due date was genuinely out of the control of the taxpayer or there was some genuine reason due to some external factors.
After filing the application for refund or carry forward of losses, the tax officer may make necessary inquiries to ascertain the correctness of the claims, Sehgal told CNBC-TV18.com.
Who can accept and reject applications?
Applications for claim of refund can be accepted beyond the due date according to Section 119. However, certain guidelines for accepting or rejecting these applications have been set out by the CBDT.
It's important to note that the belated return is required to be filed before three months prior to the end of the relevant assessment year, which is December 31, 2022 for FY 21-22. However, the taxpayer could make an application under section 119 (2) (b) only if all the specified time limits prescribed under income tax act for filing the tax return have lapsed including the due date of the belated return.
What is the time limit for making these claims?
The taxpayers have to file an application for making a claim of refund or carry forward of loss within the next six years from the end of the assessment year under this section. Further, the authorities should accept and close or reject such cases within six months from the end of the month in which they received the application, according to Clear.
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